A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 57-5-1710 SO AS TO PROVIDE THE DEPARTMENT OF TRANSPORTATION MAY ESTABLISH AND IMPLEMENT A PROJECT TO AWARD CONTRACTS USING THE "PHASE DESIGN-BUILD" PROJECT DELIVERY METHOD.
Summary
H3560 would amend the South Carolina Code to authorize the Department of Transportation (DOT) to use a new project delivery method called “Phase Design-Build” for certain projects. Under this approach, DOT would select a team based only on qualifications, then enter into an initial contract for preconstruction work such as preliminary design, constructability reviews, scheduling, and pricing. If DOT and the selected team later agree on a guaranteed maximum construction cost, they would execute a second contract to finish design and complete construction.
The bill limits use of this method to projects estimated at less than $500 million and requires DOT to determine that using Phase Design-Build is in the public interest. It also requires prequalification of the prime contractor and lead designer and directs DOT to develop guidelines before awarding any contracts under the new authority. The act would take effect upon gubernatorial approval.
Impact
The bill would add new Section 57-5-1710 to Title 57, Chapter 5 of the South Carolina Code, giving DOT explicit statutory authority to pilot or implement Phase Design-Build procurement for eligible transportation projects. It would expand DOT’s contracting options beyond traditional delivery methods by allowing a two-phase, qualifications-based process with a later negotiated guaranteed maximum price, while imposing threshold, prequalification, and guideline requirements intended to limit and structure its use.
Sentiment
There is no recorded committee transcript or vote history in the provided materials, so no direct public sentiment can be measured from debate or roll calls. Based on the bill text alone, the measure appears policy-oriented and administrative rather than controversial on its face, aimed at giving DOT more flexibility in delivering large infrastructure projects while retaining oversight through eligibility limits and required guidelines.
Contention
The main potential points of contention are likely to be the new procurement discretion given to DOT and the use of a qualifications-only selection process before price is considered. Supporters would likely favor the added flexibility, potential for better project coordination, and ability to negotiate a guaranteed maximum cost; critics may question whether the approach reduces price competition, increases risk of cost growth, or gives too much discretion to the agency. The $500 million cap and public-interest finding appear designed to address those concerns, but no specific objections are documented in the provided record.